Jul. 1 - The Reserve Bank of India has released a circular advising that new regulations on issuing checks will be effective starting December 1 and not July 1 as announced earlier.
The directive instructs banks not to clear checks with overwriting and checks with changes made to the amount or the payee’s name despite a validating signature next to it. Only changes made in the date will be allowed. Read the rest of this entry »
Jun. 30 - India plans to make all government services available online in 10 states by October eventually followed by 18 more states as part of its State Portal Project.
The services will include payment of utility bills, application for a driving license, birth and death registration certificates, pension applications and residence certificates to name a few. Read the rest of this entry »
Jun. 29 – India is setting up a new committee that will evaluate the sensitive sector investment plans of local companies with foreign shareholders to confirm if a firm is truly Indian-owned.
The panel will study plans to invest in sensitive sectors such as telecommunications, aviation and single-brand retail looking at a company’s shareholding pattern and agreements. Read the rest of this entry »
Jun. 25 - India and Canada set to begin talks on a possible free trade agreement by the end of the year.
A joint study group is working on a feasibility study that is expected to be finished soon. “The Canadians are very keen that we begin negotiations soon. The intention to start talks this year may be announced during the Indian PM’s Canada visit,” a government official said. Read the rest of this entry »
Jun. 25 – India will exempt tax on services that deal with low-cost housing construction, power distribution, services within ports and airports, selected tournaments and championships, foreign travelers in transit and those flying to and from the northeast starting July 1.
“Repair of ships or boats or vessels belonging to the Government of India, including the Navy or the Coast Guard or the Customs, but does not include government owned public sector undertakings,” the Central Board of Excise and Customs (CBEC) said as to the services exempted from tax. Read the rest of this entry »
Jun. 24 - India and Europe are set to finalize a free trade deal by the end of this year that aims to boost bilateral trade to US$66 billion in the next five years.
Negotiations begun as early as 2007 but have proceeded slowly due to trade issues presented by both countries. An “in principle” agreement between India and the EU on the FTA was likely to be had by the end of this year said 
India’s Commerce and Industry Anand Sharma during a Global India Business Meeting held in Madrid. Read the rest of this entry »
Jun. 23 - India is considering lifting its foreign direct investment cap on the insurance sector from 26 percent to 49 percent according to Finance Minister Pranab Mukherjee.
“We have committed to allow 49 percent and the necessary legislation is pending before the House, as the leg process will be completed it will be done…in a year or so.” Pranab Mukherjee told NDTV during an Indo-U.S. CEO forum in Washington. Read the rest of this entry »
Jun. 23 - The revised discussion paper on India’s new Direct Tax Code has assured that Double Tax Avoidance Agreements (DTAA) made with other countries will not be annulled when the new tax code is implemented.
Specifically the paper says that, “The current provisions of the Income-tax Act provide that between the domestic law and relevant DTAA, the one which is more beneficial to the taxpayer will apply.” Read the rest of this entry »
Jun. 21 - Warren Buffett’s conglomerate Berkshire Hathaway has confirmed its entry to the Indian market via a wholly-owned subsidiary that will use a corporate agency license to sell motor insurance policies offered by Bajaj Allianz General Insurance.
The modest entry into India will involve the company investing Rs. 500 million, or about US$11 million, to build a support structure that will include a call center. Read the rest of this entry »
Jun. 21 - Income tax exemptions for new special economic zones will no longer be available as confirmed by Revenue Secretary Sunil Mitra.
Tax deductions on income will be applicable to existing SEZs based on the latest draft version of the Direct Tax Code. The proposed ruling may affect India’s plans to open 469 new SEZs. “If SEZs are to be given concessions, we do not think these have to be tax concessions henceforth,” Mitra said in a statement. Read the rest of this entry »
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